Discard ITR Option: All You Need to Know

The Income Tax Portal now allows users to discard the Income Tax Returns (ITRs) filed before verification. Users are provided with the facility to file a fresh return after discarding the old one, if the return is filed under Sections 139(1), 139(4) or 139(5) of the Income Tax Act. Notably, discarding of ITRs is irreversible and it will be deemed as if the return has not been filed at all. On a slightly more serious note, if the return is discarded and a fresh return is filed after the due date, the penalty for belated return under Section 234F will be attracted.

Further, only ‘unverified’ returns or returns ‘pending verification’ can be discarded by the assessees. Some Frequently Asked Questions (FAQs) I filed my Original ITR u/s 139(1) on 30th July 2023 but not yet verified. Can I Discard it? Yes, users can avail the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it. Users are provided a facility to file an ITR afresh after discarding the previous unverified ITR. However, if the “ITR filed u/s 139(1)” is Discarded and the subsequent return is filed after the due date u/s 139(1), it would attract implications of belated return like 234F etc., Thus, it is advised to check whether the due date for filing the return u/s 139(1) is available or not before discarding any previously filed return.

I Discard my ITR by-mistake. Is it possible to reverse it? No, if ITR is Discarded once, it can’t be reversed. Please be vigilant while availing the Discarding option. If an ITR is Discarded, it means that such ITR is not filed at all. Where can I find the “Discard option” ? User can find Discard option in below path : www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard” Is it mandatory to file subsequent ITR if I “Discarded” my previous unverified ITR ? A user, who has uploaded the return data earlier, but has made use of the facility to discard such unverified return is expected to file subsequent an ITR later on, as it is expected that he is liable to file the return of income by way of his earlier action.

I sent my ITR V to CPC and it is in transit and not yet reached CPC. But I don’t want to verify the ITR as I know that details are not reported correctly. Can I still avail the “Discard” option? Users shall not discard such returns, where the ITR-V has already been sent to CPC.

There is an undertaking to this effect before discarding the return. When can I avail this “Discard” option and can I avail this “Discard” option multiple times or only once? Users can avail this option only if the ITR status is “unverified” / “Pending for verification”. There is no restriction on availing this option multiple times. Precondition is “ITR status” is “Unverified” / “Pending for verification”. My ITR filed for AY 2022-23 is pending for verification. Can I avail this “Discard” option? Users can avail this option only from AY 2023-24 onwards for the respective ITR. This option will be available only till the time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now).

I discarded my Original ITR 1 filed on 30th July 2023 on 21st August 2023 and I want to file subsequent ITR on 22nd August 2023. Which section should I select? If a user discards the Original ITR filed u/s 139(1) for which due date u/s 139(1) is over, they are required to select 139(4) while filing subsequent return. As there is no prior valid return exist, date of Original ITR / Acknowledgement number if Original ITR fields are not applicable. Further, if the user wants to file a revised return in future, he needs to provide details of “Original filing date” and “Acknowledgement number” of the valid ITR i.e., ITR filed on 22nd August 2023 for filing revised ITR.

The provision to discard Income Tax Returns is set to reduce errors in filed and verified returns, giving stakeholders a chance at correction without having to file a revised return.

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